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If the taxpayer elects to waive the two-year

of net operating loss from all sources. Only

Line 9 – Enter income that is not related

carryback period and carry the NOL forward,

your California sourced income and losses

to a trade or business (such as dividends,

enter the amount from line 25 on Part III,

are considered in determining if you have a

pensions, annuities, income from an

line 4, column (d) and column (h). If you have

California NOL.

endowment, or interest earned on

an NOL from more than one source/type, list

investments).

Change of Residency to California.

each loss separately.

For taxable years beginning on or after

Line 11 and Line 12 – You may subtract

If you have an NOL or disaster loss from prior

January 1, 2002, if you have NOL carryovers

nonbusiness deductions only from

years (line 23), complete Part II and Part III, to

and were a nonresident of California in prior

nonbusiness income, including any

determine the loss carryover to future years.

years, the NOL carryovers must be restated

nonbusiness capital gains that remain after

as if you had been a California resident for all

deducting nonbusiness capital losses. If your

Purpose

prior years.

nonbusiness deductions are larger than your

nonbusiness income, you may not deduct the

Individuals, estates, or trusts use form

Change of Residency from California.

excess.

FTB 3805V, to figure the current year NOL

For taxable years beginning on or after

and to limit the NOL carryback/carryover and

January 1, 2002, if you have NOL carryovers

Line 16 – You may deduct business capital

disaster loss deductions.

and you become a nonresident of California,

losses only up to the total of business capital

your NOL carryovers must be restated as if

gains and any nonbusiness capital gains that

Corporations use form FTB 3805Q, Net

you had been a nonresident of California for all

remain after deducting nonbusiness capital

Operating Loss (NOL) Computation and NOL

prior years.

losses and other nonbusiness deductions.

and Disaster Loss Limitations — Corporations.

If your residency status changes from the time

Line 23 – Enter the amount of your prior year

NOLs

you generate the NOL carryover to the time

NOL and disaster loss carryover from your

you apply the NOL deduction, you will need

2015 form FTB 3805V, Part III, line 5 and

NOLs and Disaster Losses – If your

to recompute the NOL carryover amount. For

line 6.

deductions for the year exceed your income,

more information, get FTB Pub. 1100, Taxation

you may have an NOL carryover. The California

Line 28 – Go to Part III, Current Year NOLs,

of Nonresidents and Individuals Who Change

NOL is generally figured the same way as the

line 4, to record your 2016 NOL carryover

Residency.

federal NOL. However under California law:

to 2017. Complete line 4, column (d) and

column (h), for each type of loss that you

y Carryover/carryback periods and

Specific Line Instructions

incurred. See Part IV, line 3, column (c) and

percentages vary with the type of California

column (i) for each type of loss that the

NOL. The tables on page 5 and page 6 show

Form FTB 3805V is divided into four parts:

Individuals, estates, and trusts incurred.

the types of NOLs available, a description,

the taxable year the NOLs were incurred,

Part I:

Computation of Current Year NOL.

Section B – Nonresidents and

the percentages and carryover/carryback

Part II:

Determine Modified Taxable Income

Part-Year Residents

periods for each type of loss.

(MTI). MTI is the amount of your

y An NOL may be carried over to future

Full-Year Nonresidents: Complete Part I,

taxable income that can be offset by

years. No carrybacks are allowed for NOLs

Section B, column A and column B.

your prior years’ NOL carryover.

incurred in taxable years beginning before

Part-Year Residents: Complete Part I,

Part III:

NOL Carryover and Disaster Loss

January 1, 2013. Note: California will allow

Section B, column A through column E.

Carryover Limitations.

NOLs incurred in taxable years beginning

Enter the number of days during the year you

on or after January 1, 2013, to be carried

Part IV:

NOL Carryback.

were a California resident: ________________

back to each of the preceding two taxable

Part I – Current Year NOL

years. For more information, see the NOL

Enter the number of days during the year you

Carryback table on page 5.

were a nonresident: _________________.

Use Part I to figure your current year NOL, if

y Prior to the 2014 taxable year, if you elected

any, to carry back to the preceding two years

Complete column A, line 1 through line 25 as

an NOL from an activity within the following

or to carry over to future years.

if you were a California resident for the entire

areas or zones to offset income earned

year.

If you have losses from more than one

solely within those areas or zones:

source and/or more than one type, it may

Line 1 – Enter the amount from 2016 Long

1) Enterprise Zone (EZ). Get FTB 3805Z,

be necessary to compute the allowable NOL

Form 540NR, line 17.

Enterprise Zone Business Booklet, for

carryover for each loss separately.

Line 2 – Enter the amount from 2016 Long

more information.

If you do not have a current year NOL, skip

Form 540NR, line 18.

2) Local Agency Military Base Recovery

Part I and go to Part II.

Area (LAMBRA). Get FTB 3807, Local

Line 3a – If negative, use brackets. If positive,

Agency Military Base Recovery Area

enter -0- here and on line 25. Complete Part II

Section A – California Residents

Business Booklet, for more information.

and Part III if you have a carryover from prior

Line 3 – Estates or trusts, enter the amount

years.

from your 2016 Form 541, line 20a or

Nonresidents and

Line 18 – If you do not have a loss on

Form 109, line 9.

Part-Year Residents

Schedule D (540NR), line 4 worksheet for

Line 8 – Enter deductions that are not related

nonresidents and part-year residents, skip

Do not complete Part I, Section A.

to a trade or business and are not related to

line 18 through 21 and enter on line 22 the

Full-Year Nonresidents: Complete Part I,

your employment (such as taxes, medical

amount from line 17.

Section B, column A and column B.

expenses, alimony, charitable contributions,

Complete column B, line 1 through line 25 if

and your contributions to individual retirement

Part-Year Residents: Complete Part I,

you were a nonresident for the entire year.

plans). If you do not itemize your deductions,

Section B, column A through column E.

your nonbusiness deductions include the

Line 1 – Enter the amount from 2016 Long

NOL Carryover Computation. For taxable years

standard deduction. A casualty loss is

Form 540NR, line 32.

beginning on or after January 1, 2002, the

considered a “business expense” regardless

Line 2 – Enter the amount from 2016

NOL carryover computation for the California

of whether it is connected with a trade or

Schedule CA (540NR), line 48.

taxable income of a nonresident or part-year

business; do not include it as a nonbusiness

resident is no longer limited by the amount

deduction.

Page 2 FTB 3805V Instructions 2016

Instructions For Form Ftb 3805v - Net Operating Loss (Nol) Computation And Nol And Disaster Loss Limitations - Individuals, Estates, And Trusts - 2016 Page 2

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